Interesting article about Oil

wanghong

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: h* Z! ^$ D0 jBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
6 y$ L/ A' s. r4 r$ d: V  ~8 k3 mcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
" M0 Z, L; t4 [# dcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
' v  H. N6 {6 }( i- Cmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
5 ^1 D* K+ P7 @6 C( }0 `A year ago these things would have spiked the price of crude oil by at
( R6 m; q+ Z, C8 [4 F+ ]least $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
/ d% B2 r" v( Y* eof so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
: }% `) [+ e7 G  _% RArabia.
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6 k/ p7 ~! G: `4 f' f2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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) N6 _+ _$ L* J, x: d# B2 M4 k4 W4. Production of bio-fuels is beginning to reach critical mass. Bio
% H) I  b1 M2 t0 C: R/ R6 gfuel is being produced from many plants and algae. The production
! ]$ k$ u" t$ f0 a" ^, l8 Npotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

9 ~5 y" |, K& A1 L$ z: E  e* `
7 J! L2 K4 |  \5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
0 G! q; R. B' n9 ncattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
( b2 ~- l3 I$ s5 \expected to be built in the future. Much of the energy they produce
+ ~6 v& R/ {) Z( S- [7 _6 wwill replace oil.
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$ x1 n) Z) R* X  t3 x3 a/ h/ j" E7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
- b3 B3 L( J7 b- ^: J! b0 C3 ^4 rare experiencing 20% to 25% better fuel econony with the new
equipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
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; R- M! R& E' j9. Coal is being transformed into a clean burning liquid fuel. The CO2
4 U- @% B3 c% y5 g8 s# [produced as a byproduct is sold to oil companies for injection into
8 T% B( q& w' r3 R- X+ N: Woil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
/ v  |6 k9 ^6 u) b9 O( Xsource. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
8 n) O& }+ h* D# x: Qprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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8 s+ A2 N# c  \  o3 mWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
5 N& s+ m( j9 d. @value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
$ @6 q9 f  x/ I. s1 N% ]2009 ... FYI-Only